bp to Sell 20% Stake in Oman‎’‎s Block 61 to PTTEP

bp has agreed to sell a 20% participating interest in Oman’s Block 61 to PTT Exploration and ‎‎Production Public Company Limited of Thailand for a total consideration of $2.6 billion. ‎Following completion of ‎the sale, bp will remain operator of the block, holding a 40% interest.‎ ‎Subject to approval from the Sultanate of Oman and partners, the deal is expected to complete during ‎‎2021. The agreed total consideration of $2.590 billion comprises $2.450 billion payable on completion ‎‎(subject to final adjustments) and $140 million payable contingent on pre-agreed future conditions.‎ Following completion, participating interests in Block 61 will be: bp, 40%; OQ, 30%; PTTEP, ‎‎20%; and ‎PETRONAS, 10%.‎

Block 61, covering around 3,950km2 in central Oman, contains the largest tight gas ‎development in the Middle East. The block has already had two phases of development – ‎Khazzan, which began production in 2017, followed by Ghazeer in October 2020.

These two developments, targeted at developing a total of 10.5 trillion cubic feet of gas ‎resources, have a combined daily production capacity of 1.5 billion cubic feet of gas and more ‎than 65,000 barrels of condensate. Gas from Block 61 is exported for domestic consumption ‎into Oman’s national gas grid, while also boosting availability of feedstock supply for Oman ‎LNG.‎

Block 61 timeline

2007: PSA for Block 61 Khazzan field signed

2007-2013: appraisal confirmed existence of significant tight gas resources

2013: Khazzan, first phase of field development, sanctioned

2016: bp signed an amendment to the Block 61 PSA agreement adding additional area to ‎the south and west of original Block 61 development, allowing a second phase of ‎development, the Ghazeer field

‎2017: first gas from Block 61 Phase 1, Khazzan, delivered ahead of schedule

2018: development of Block 61 Phase 2, Ghazeer, sanctioned

2018: OQ sold 10% interest in Block 61 to Petronas

Oct 2020: first gas from Ghazeer delivered ahead of schedule.